Re: Follow the money
That's not really how tech bubbles generally work. What happens usually is that a technology starts off pretty expensive, but pretty desirable...which requires a lot of investment. Then the technology matures a bit, not a lot changes, but it becomes an arms race...more hardware is required for competitive edge...faster, bigger, more! Then the hardware becomes much more efficient, and you need less of it to get the same results, so the cost of running it becomes lower...but we're still climbing, but not as fast, because the hardware isn't commodity hardware yet, you still need loads of cash to keep it going and to participate in the arms race...at this point the tech becomes better value and opens up to more people, which is more profit / value to the business...finally, the tech becomes so optimised and the hardware so cheap that literally anyone can do it for peanuts...this is where we "crash"...however, even though the stock has tumbled, it doesn't mean the tech is going anywhere...it simply becomes another technology that is everywhere, abundant and cheap.
We are currently at the early "arms race" phase...which is why NVIDIA et al have had a massive bump...because they provide the hardware, but none of the actual resulting tech. Either the next generation or the generation after with GPUs is where things start getting a lot cheaper and the tech becomes "commodity" tech...because models and technology built on the current generation of GPUs will become trivial to run...the major thing we're looking for is VRAM being cranked up...because VRAM is currently what is holding things back in terms of making current AI tech commodity, you can't run the more sophisticated models on mid tier or lower GPUs without sacrificing quality through quantization etc...when we reach about 32GB of VRAM on a mid tier GPU or when some smart alec figures out how to use resizeable BAR in an efficient way, that's when we start to see the cost of AI come down....because the tech will no longer be about training newer, bigger, better models from the ground up (which is expensive), it will be about tuning and training existing models...which will become a lot easier to do when users have more VRAM.
So to summarise, crashes happen in tech when something stops being commercially viable in terms of massive profits and holding tech behind massive walls of money.
Similar thing happened with the DOTCOM era. People that could build websites were hard to find and the knowledge was harder to come by, which meant the number of people capable of building websites grew very slowly...it was quite a technical thing back in the mid 90s to build a website. It may seem quaint now that we used FTP software and notepad to handwrite static HTML...but in those days, building simple sites was very time consuming...eventually we had Frontpage and Dreamweaver hit the scene and suddenly loads of people could build websites, and we had a massive spate of websites appearing...richer sites that took less time to make...eventually the cost of building a website became so cheap that even your local hairdresser had a website...it was no longer something that was considered "cutting edge" or "forward thinking"...it was just something that a business did...loads of people out there to do it, tech became easier, we had a crash...etc etc...but the technology never went anywhere...it just became commodity...fast forward to today, and anyone can learn how to build a basic, decent looking website in an afternoon...if you put a few more days in, you can learn a JS framework and use a database...shit you can use AI and never write a line of code...we've reached a point now where developing a website is so streamlined that we've had massive layoffs in the space because large businesses have worked out that you don't need dozens and dozens of web developers anymore...you can have just 2 or 3 and get at least the same result.
The same commoditisation will happen with AI...right now, it's still quite early, the tech is fiddly and not really geared up for the man on the street to setup, use and train...we're at the "notepad and FTP" stage, which will look really twee in about 5-10 years time. Give it a year or so and we'll see some tools that allows your average "Deano" to load an existing model, drag in a bunch of data and click "train" to refine their own models for their own purposes...you won't need to be OpenAI to pull that off with thousands of GPUs...you just need to be "Dave" with a dumb idea, some data, and a fairly good GPU...we'll start to see a bunch of "Dave & Sons" local AI training businesses who can show up at your house, help you with your data and will make you a model specific to your purposes...there will be money here for a while...until someone releases an open source tool that any Tom, Dick or Harry can use to do the same thing...like a wix.com for AI...drag and drop, not amazing, but just right for your typical man on the street to get started with.
It's got nothing to do with "pumping and dumping"...it has everything to do with how tech develops and moves on.
So get off your armchair with your tin of Kestrel, take your tinfoil hat off and take some risks like the other people currently driving the market. There is money to be made, just don't be one of the soft bastards that is always late to the party...the music is playing now, it's thumping hard and unlike previous tech "bubbles" it's even easier now to get involved that it has ever been...the dotcom bubble was extremely difficult to participate in by comparison, because you couldn't just buy stock from your smartphone. You couldn't search the internet as easily to find out whats going on, how to use the tech etc etc...there was github, stackoverflow, wikipedia, youtube etc etc...if you always feel like these booms and busts are always out of your reach and they are just "scams set up by the man" then you are either fucking lazy or thick as pigshit...pick one.
I have invested in loads of so called "scams" over the years...not driven by the hype, but driven by what I know about tech "bubbles"...there are several rules out there that degenerate traders will repeat like the hooded weirdos out of Hot Fuzz..."Buy the rumour, sell the news", "Buy fear, Sell Greed"..."THE GREATER GOOD!"...but the only rule you really need to understand to not get your fingers burned is "Markets come and go" because they do, they always do.